What motor insurance covers vs. What it excludes

Motor insurance covers natural and man made calamities, such as lightning, floods, and so on, third party legal liability, and personal accidents. It doesn't cover normal wear and tear, depreciation, breakdowns, and so on.

Apnainsurance.com Research Bureau

26 Nov 2007

What it covers

A
comprehensive car insurance protects you against any loss or damage caused to
the vehicle and its insured accessories as a result of natural and man-made
calamities, such as:

Natural calamities:

Fire

Explosion

Self-ignition or lightning

Flood

Typhoon/hurricane/storm/tempest/inundation/cyclone/hailstorm/frost

Landslide/rockslide

Fire and shock damage due to earthquakes

Man-made calamities:

Burglary

Housebreaking or theft

Riots or strikes

Accidents by external means

Malicious acts

Terrorist activity

Damage whilst in transit by road, rail, inland-waterway,
lift/elevator, or air

Third party legal liability: A mandatory part of the insurance cover, it protects
the vehicle owner against legal liability arising due to an accident, causing
any permanent injury or death of a person or any damage caused to property.

Personal accident cover: The motor insurance plan compulsorily provides
personal accident cover for individual owners of a vehicle while driving. The
owner can also opt for personal accident cover for passengers in the vehicle.

What it excludes:

Typically,
the motor insurance plan does not provide for:

Normal wear and tear or general ageing of the
vehicle

Mechanical/electrical breakdown

Depreciation, wear and tear of consumables like
tubes and tyres

Damages that occur while a person is driving
with invalid driving license

Damage that occur while a person is under the
influence of drugs or liquor

Damage due to a war, civil war, mutiny, or
nuclear risk

Claims arising out of contractual liability

Use of vehicle other than what it is meant for.
For example, if a private car is being used as a taxi and gets involved
in an accident, the owner will not be able to claim damages.

See also:

What is automobile insurance? Is it mandatory for a vehicle to be insured?

How long should I cover my vehicle?

What is the amount that I should insure my vehicle / What is IDV?

What are the different kinds of vehicles that are insured by the motor insurance companies?

Is there an age limit for vehicles being insured?

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